[News] Samsung-Baidu 2nm Chip Deal Reportedly Stalls Amid U.S.-China Tensions

As Samsung pushes to expand its advanced-node customer base, its 2nm collaboration with China’s Baidu may be put on hold, according to Sedaily.

The report, citing an industry source, reveals that Baidu previously aimed to produce AI chips with Samsung’s 2nm process, but talks stalled after Trump took office. It appears that balancing U.S. concerns while securing major clients has become a tough dilemma, even for tech giants.

According to Sedaily, Samsung had planned to mass-produce AI accelerators for Baidu in 2025 using its 2nm node. The plan is also said to include integrating Samsung’s HBM products for better performance.

However, with the 2nm project on hold, they are now exploring other advanced chip partnerships, the report indicates.

The report attributes Samsung’s withdrawal to Trump’s tightening semiconductor policies, including potential chip tariffs and the repeal of the CHIPS Act. According to Tom’s Hardware, White House plans to slash 40% of the CHIPS Act office in the Commerce Department, which manages the semiconductor policy.

On Dec. 20, 2024, the Biden administration awarded the South Korean tech giant $4.7 billion under the act, less than the $6.4 billion initially expected.

However, due to market uncertainties, Samsung is reportedly evaluating the feasibility of suspending investments in its Pyeongtaek plant in Korea and Taylor plant in the U.S., as per the Korea Economic Daily. With TSMC’s additional $100 billion investment in the U.S., Samsung may risk losing more business.

The company’s $37 billion US fab in Taylor, Texas, has already been delayed, with production now set for 2026 instead of its original timeline, the report adds.

Read more

• [News] Samsung Reportedly Reviews Chip Business, Considers Halting Pyeongtaek and U.S. Taylor Investments
• [News] TSMC’s $100 Billion U.S. Investment Puts Pressure on Samsung and SK hynix’s Next Move

(Photo credit: Samsung)